2005 Arizona Revised Statutes - Revised Statutes §9-492  Investment of sinking funds and surplus or idle funds of municipality

A. The governing body of a municipality may invest its sinking funds in United States, state, or county bonds or in bonds, debentures or other obligations issued by the federal land banks, the federal intermediate credit banks or the banks for cooperatives.

B. In addition to the provisions of subsection A of this section, the governing body of a municipality may invest its surplus or idle funds in United States treasury bills, notes or bonds which have a maturity date of not more than one year from the date of investment and in accounts of any savings and loan association insured by an agency of the government of the United States, up to the amount of such insurance.